The increase in demand for smartphone OLED panels has made Samsung's OLED Business Unit very satisfied, but there is another worry that should not shrink the LCD business. Although the long-term focus on the panel market will gradually shift from the LCD to the OLED, but the reduction of strength and timing have to carefully consider. The industry that the Samsung show plans to dominate the OLED and LCD market at the same time, LCD cause fear will become a tedious abandoned the embarrassing positioning.
According to the Korean media reports, with Samsung OLED business and LCD business performance gap, OLED is expected to become the main cause. South Korea's financial industry estimates that in the first quarter of 2017 OLED business revenue will reach 4.5 trillion won (about 40 billion US dollars), a record high quarter, while accounting for 61.6% of the overall revenue ratio. While the LCD business revenue of about 2.49 trillion won, accounting for 38.4%. Compared to the first quarter of 2015 OLED revenue accounted for only 40% of the overall, now OLED has successfully squeezed the LCD, promoted to the Samsung display signs business.
2017 In addition to Samsung Electronics (Samsung Electronics) launched GalaxyS8 series of smart phones, the third quarter Apple is expected to launch OLED panel equipped with iPhone8. Other mainland mobile phone industry in order to get rid of cheap image, but also increase the use of OLED panels, OLED demand is growing. According to research institutions forecast, by 2020 flexible AMOLED mobile phone panel compound annual growth rate will reach 88.2%. IHS Markit predicts that the 2017 Samsung monitor will be completely turned into OLED industry, OLED revenue will officially start beyond the LCD.
Facing with the changes in market trends, Samsung began to adjust the production line and manpower configuration. 2016 at the end of the original production of LCD Asan L7-1 production line after the shutdown, began to OLED conversion operations, many of the original LCD sector employees have been transferred to the OLED production line. The report said that in the third quarter of 2016 Samsung showed the number of cadres responsible for the cause of OLED 31 people, accounting for 30% of the total number of cadres, compared with only 14% in the first quarter of 2015 much higher. Factory workers were mostly in the LCD production line, the current OLED and LCD are about 12,000 people, the level is close to.
Samsung shows the current fall into the cause of LCD business and reduce the dilemma, if the focus on the development of OLED business, but also worried that the status of LCD will be handed over to the mainland competition industry. In 2016, BOE began to build 10.5-generation LCD factory, scheduled for 2018 opening. Huaxing photoelectric is also actively planning 11-generation line factory opening. The mainland industry, large-scale investment and catch up with the speed, so that South Korea can not relax. The industry believes that the mainland's production of TV panels have the backing of the domestic market, if the ongoing aggressive investment in the future should be beyond the Korean panel industry.
Another Samsung monitor can not arbitrarily reduce the size of the cause of the cause of the LCD, it is necessary to ensure the stable supply of Samsung Electronics required panel number. Samsung Electronics decided to LCD panel-based quantum dot light-emitting diode (QLED) TV and OLED TV, then rely on the purchase of LCD panel to the outside industry, fear will weaken the competitiveness of the TV industry. The industry said that Samsung shows whether the increase in LCD investment, to prevent the mainland industry attack, or devoted to invest in OLED, is a choice and focus strategy. The future must accurately estimate the market demand, at any time concerned about the market pulse, is definitely not a simple decision.